dividend

American  

[div-i-dend] / ˈdɪv ɪˌdɛnd /

noun

1. Mathematics. a number that is to be divided by a divisor.

2. Law. a sum out of an insolvent estate paid to creditors.

3. Finance.

   1. a pro-rata share in an amount to be distributed.

   2. a sum of money paid to shareholders of a corporation out of earnings.

4. Insurance. (in participating insurance) a distribution to a policyholder of a portion of the premium not needed by the company to pay claims or to meet expenses.

5. a share of anything divided.

   Synonyms:

   portion, allotment

6. anything received as a bonus, reward, or in addition to or beyond what is expected.

   Swimming is fun, and gives you the dividend of better health.

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dividend British  

/ ˈdɪvɪˌdɛnd /

noun

1. finance

   1. a distribution from the net profits of a company to its shareholders

   2. a pro-rata portion of this distribution received by a shareholder

2. the share of a cooperative society's surplus allocated at the end of a period to members

3. insurance a sum of money distributed from a company's net profits to the holders of certain policies

4. something extra; bonus

5. a number or quantity to be divided by another number or quantity Compare divisor

6. law the proportion of an insolvent estate payable to the creditors

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dividend Scientific  

/ dĭv′ĭ-dĕnd′ /

1. A number divided by another. In the equation 15 ÷ 3 = 5, 15 is the dividend.

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dividend Cultural  

1. A payment to the stockholders of a corporation from the corporation's earnings.

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Other Word Forms

Derived Forms

• superdividend
  noun

Etymology

Origin of dividend

First recorded in 1470–80; from Latin dīvidendum “thing to be divided,” neuter gerund of dīvidere “to separate”; see divide

Explanation

A dividend is a bonus. If you buy a cup of coffee and the shop owner throws in a free muffin, that's a dividend. Your charm and loyal patronage are paying dividends! If you own stock and your company has had a good year, you’ll probably get a dividend — a share of the profit the company pays to shareholders. You've probably also heard the word dividend in math class: if you've got 300 divided by 50, 300 is the dividend (and 50 is the divisor).

Example Sentences

Its dividend yield is close to a record low.

From The Wall Street Journal • Jun. 10, 2026

That isn’t supposed to happen to Nestlé: Unflashy yet reliable products such as Nescafé instant coffee and Fancy Feast cat food are expected to deliver steady gains and a solid dividend, rather than wild selloffs.

From Barron's • Jun. 10, 2026

Despite lower earnings projection after subdued 1Q results, sector valuations remain reasonable and dividend yields continue to be attractive, he adds.

From The Wall Street Journal • Jun. 9, 2026

“Our target is to pay at least 75% of our cash available for distribution in the form of a dividend, and my expectation over time is to very much grow that dividend,” he said.

From Barron's • Jun. 9, 2026

The companies paid high dividends, and their shares were often costly to borrow: New Century, for instance, paid a 20 percent dividend, and its shares cost 12 percent a year to borrow.

From "The Big Short" by Michael Lewis

Related Words

• allowance
• bonus
• coupon
• gain
• premium
• proceeds
• remittance
• reward
• surplus